North Carolina Down Payment Support Systems

Online Payments - The North Carolina Housing Finance Agency has two great plans for First Time Home Buyers. These programs will be the Mortgage Credit Certificate as well as the deposit Assistance System.

If you meet the requirements for one of these plans and you purchase a house between January 1, 2009 and December 1, 2009, you might also be eligible for the $8,000 tax credit only enacted into law.

First, who is a first-time Home Buyer? A first-time Home Buyer is someone who hasn't owned a house within the past three years. That is the same qualifying definition.

All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step further. An MCC “reduces your tax liability depending on a percentage of the mortgage interest that you pay.

You can claim 20% of the interest you pay on your own mortgage as a credit in your federal income taxes, in case you qualify for the MCC. It is possible to save as much as .

Should you qualify for 2009, for the MCC, you'll have the ability to combine this with the $8,000 tax credit. This might reduce a buyer's tax liability .

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any man anticipated to reside in the dwelling who is 18 years of age or older.”

House price limitations Durham and Chatham Counties and the income are given below.

MCC Income Limits 1 Man $61,500 2 Men $61,500 3 Persons $70,500 4 Persons $70,500

MCC Sales Cost Limits New Home $220,000 Existing House $210,000

The buyer only has to pay $1,000 of their own funds and the load would pay up to $8,000 of the remaining balance.

This plan has more rigorous income limits than the MCC program outlined above. Like the MCC program, it can be used along with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment help, however, cannot be utilized in conjunction with all the MCC. This really is an either or situation.

The income and house price limitations that apply in Durham Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limits

1 Person $39,950 2 Men $45,650 3 Persons $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New Home $210,000 Existing Dwelling $210,000